How Manufacturers Use Microsoft Dynamics 365 Business Central to Launch and Scale eCommerce Channels
3 min read ● Silk Team
How Microsoft Dynamics 365 Business Central Powers Modern eCommerce for Manufacturers
In today’s world of B2B and B2C buying, manufacturers and distributors are witnessing a seismic shift in how buyers discover, assess, and buy products. As consumers in the B2C eCommerce space enjoy greater digital convenience in finding product availability in real-time, comparing prices easily, ordering products online quickly, and having them fulfilled rapidly; B2B and B2C buyers are now expecting similar ease of use in their own digital commerce experiences.
While launching an online storefront for manufacturers is a great start, manufacturers must go much further than just creating a digital storefront to meet buyer demands. To achieve true digital commerce success, manufacturers must connect their eCommerce storefront to the operational systems that run their business, which is where Microsoft Dynamics 365 Business Central comes in.
By integrating Business Central with an eCommerce platform, manufacturers can create a unified digital commerce architecture where product data, pricing, inventory, customer data, and orders move seamlessly between systems. This integration creates the ability for manufacturers to launch new digital sales channels, while keeping their operational systems running smoothly and accurately.
To understand how Business Central powers modern eCommerce operations, manufacturers can develop scalable digital commerce strategies that provide for long-term growth.
Microsoft Dynamics 365 Business Central is a cloud-based Enterprise Resource Planning (ERP) solution designed to handle the operational needs of growing companies. Business Central offers a centralized platform for companies to manage all aspects of their business operations.
For manufacturers, Business Central serves as the operational system of record where product data, pricing structures, warehouse inventory, and financial transactions are recorded.
When Business Central is connected to an eCommerce platform, it becomes the operational backbone that powers digital commerce channels. Rather than operating separate systems for online sales and internal operations, manufacturers can link their ERP and eCommerce systems to allow for seamless data exchange between the entire company.
Why Manufacturers Require ERP-Powered eCommerce
Manufacturers operate in a complex environment with numerous product offerings, multiple warehouse locations, distributor relationships, and customer-specific pricing models. Without an ERP connection to their eCommerce operation, manufacturers may find themselves unable to manage their eCommerce operation efficiently.
Challenges facing manufacturers who do not have an ERP connection to their eCommerce operation include:
- Inventory inaccuracies between the ERP and eCommerce systems
- Manual entry of online orders into internal systems
- Price discrepancies between sales channels
- Poor visibility into the status of order fulfillment
- Operational bottlenecks created by unconnected systems
These problems create operational risk and lead to poor customer experiences.
ERP-enabled eCommerce connections resolve these problems by providing automatic transfer of operational data between Business Central and the eCommerce platform. Using an ERP-enabled eCommerce connection means that manufacturers can manage both their digital sales channels and internal systems using a unified approach.
How Business Central Allows Manufacturers to Launch eCommerce Channels
To create a viable eCommerce channel, manufacturers need to have access to accurate and reliable product data, inventory levels, pricing, and order management systems. Business Central provides the necessary infrastructure for these requirements through its ERP connection.
Product Catalog Management
Product data, such as SKUs, product descriptions, technical specifications, pricing structures, and product availability are stored in the manufacturer’s ERP system. Business Central connects to the eCommerce platform, populating the online storefront with the most up-to-date product data. This eliminates the necessity for manual updates to the eCommerce catalog.
Inventory Synchronization
Accurate inventory visibility is a critical component of delivering a good customer experience. By synchronizing Business Central with an eCommerce platform, manufacturers can provide real-time inventory visibility for their online customers, including:
- Current product availability
- Warehouse inventory levels
- Estimated dates for replenishment
- Backorder availability
Real-time inventory synchronization removes the potential for over-sold items and assists manufacturers in controlling their fulfillment planning.
Automatic Order Processing
Online orders are manually processed into internal systems for manufacturers who lack an ERP connection to their eCommerce platform. Business Central provides automated order processing by linking orders entered into the eCommerce storefront directly into the ERP system.
This process streamlines online sales processing for manufacturers by:
- Creating sales orders automatically
- Generating invoices automatically
- Updating inventory levels automatically
- Initiating fulfillment workflow automatically
Automated order processing greatly decreases manual labor required, while improving order accuracy and processing speed.
Customer Account and Pricing Management
Many manufacturers offer custom pricing to customers based on contracts, volume, or other criteria. Business Central allows manufacturers to track and manage:
- Customer-specific pricing
- Volume discount pricing
- Contract pricing agreements
- Credit limits and payment terms
Once connected to an eCommerce platform, the pricing structure can be displayed in the online storefront so customers can view pricing relevant to their organization.
Scaling eCommerce Operations Using Business Central Integration
Launching an eCommerce site represents the initial phase of developing an eCommerce strategy. However, manufacturers must also develop systems to enable long-term digital growth.
The Business Central integration provides the necessary framework to support efficient scaling of eCommerce operations.
Multi-Channel Sales Management
Manufacturers sell through various channels, including:
- Direct-to-consumer sites
- Distributor portal
- B2B ordering platforms
- International storefronts
By integrating these digital channels with Business Central, manufacturers can manage all orders, inventory, and pricing using a single operational system. The centralized architecture simplifies operations and enables manufacturers to add new digital markets.
Real-Time Pricing Management
Price adjustments occur regularly in manufacturing environments due to factors like cost of materials, price promotions, or customer-specific agreements. Business Central enables manufacturers to update prices in real-time, ensuring customers see the correct pricing on their website.
This capability increases confidence in pricing for customers and reduces the potential for pricing errors.
Inventory Viewability Across Warehouse Locations
Manufacturers often manage inventory at multiple warehouse locations. Business Central allows manufacturers to maintain visibility to inventory levels at each warehouse location.
Once integrated with eCommerce platforms, manufacturers can:
- Display actual available stock quantities
- Optimize fulfillment routes
- Manage backorders effectively
Increased inventory visibility provides operational efficiencies while ensuring customers receive accurate delivery expectations.
Data Driven Business Insight
When manufacturers connect their ERP and eCommerce systems, they gain access to more comprehensive data. Because orders, customer behavior, inventory movement, and financial transactions are centralized in Business Central, manufacturers can generate insights to inform their strategic decision-making.
Insights may include:
- Sales performance by product line
- Customer purchasing patterns
- Demand forecasting
- Operational efficiency metrics
This increased level of data visibility enables manufacturers to continually improve their digital commerce strategy.
Common Data Types that Flow Between Business Central and eCommerce Systems
Synchronizing ERP data and eCommerce data is critical to establishing a successful ERP-eCommerce integration.
| Data Category | Examples of Data Synchronized |
|---|---|
| Product Data | Product SKUs, descriptions, images, specifications, and categories |
| Inventory and Availability | Warehouse stock quantities, safety stock thresholds, backorder availability |
| Pricing and Customer Data | Customer-specific pricing, tiered pricing, account information, contract pricing |
| Orders and Fulfillment | Sales orders, shipment tracking, invoice generation, order status updates |
Bi-directional data synchronization ensures that both systems are consistently aligned.
eCommerce Platforms Frequently Integrated with Business Central
Manufacturers frequently integrate Business Central with popular eCommerce platforms that support both B2B and B2C sales.
- Shopify
- BigCommerce
- Adobe Commerce
Each platform has its unique capabilities and may be more suitable for specific manufacturer requirements.
- Shopify offers rapid deployments and strong ecosystem support.
- BigCommerce offers advanced B2B functionality and flexible APIs.
- Adobe Commerce offers high customization options for large-scale enterprise eCommerce solutions.
Regardless of the selected eCommerce platform, the success of the integration is dependent upon the quality of the ERP integration.
Recommended Best Practices for Implementing Business Central eCommerce Integration
Use Clean ERP Data
Before integrating systems, organizations should ensure that product data, pricing structures, and inventory records within Business Central are accurate and consistent.
Using clean data ensures that the integration will produce accurate results.
Plan for Automation
Integration should strive to minimize manual intervention whenever possible.
Automating processes such as creating sales orders, updating inventory, and synchronizing pricing will increase operational efficiency and reduce errors related to human interaction.
Plan for Future Expansion
Manufacturers should plan their integration architecture to support future growth opportunities.
Future growth could be related to launching new storefronts, expanding internationally, or entering new digital sales channels.
An architected-for-growth solution ensures that the integration remains viable as the business expands.
Prioritize Real-Time Data Synchronization
Real-time synchronization between Business Central and the eCommerce platform is critical for ensuring accurate product availability and pricing.
Buyers rely on accurate information to make informed purchasing decisions.
Maintaining real-time data synchronization between systems ensures that both operational accuracy and customer satisfaction are improved.
How Silk Commerce Can Assist Manufacturers to Connect Business Central with eCommerce
Establishing ERP-eCommerce integrations requires organizations to possess knowledge and skills across multiple systems, including ERP platforms, eCommerce technology, and data architecture.
Silk Commerce collaborates with manufacturers to design and deliver scalable integrations between Microsoft Dynamics 365 Business Central and leading eCommerce platforms.
Utilizing these integrations, manufacturers can:
- Synchronize product catalogs and pricing
- Automate order processing workflows
- Provide real-time inventory visibility
- Launch scalable B2B and B2C eCommerce storefronts
Collaborating with experts in integration will assist organizations to mitigate the risks associated with integration implementations and accelerate their time to market.
Conclusion
Manufacturers that wish to establish and scale eCommerce channels must ensure that their digital storefronts are closely linked to their operational systems.
Microsoft Dynamics 365 Business Central provides the operational foundation that manufacturers need to support modern digital commerce. When integrated with eCommerce platforms, it enables manufacturers to synchronize product data, automate order processing, maintain accurate inventory visibility, and scale their digital sales channels efficiently.
As digital commerce continues to grow in significance, ERP-enabled eCommerce connections will remain a vital strategic competency for manufacturers desiring to create lasting competitive advantages.